EPFO has increased the auto-settlement limit for advance claims from Rs 1 lakh to Rs 5 lakh. This was announced by the Union Labour & Employment Minister Mansukh Mandaviya, as reported by ANI. The increased limit will facilitate faster access to funds for EPFO members, especially in times of urgent need.
This major service enhancement is expected to benefit lakhs of EPF members, as per the Union Minister. During the COVID-19 pandemic, the Ministry of Labour & Employment introduced the auto-settlement of advance claims to provide quick financial assistance to EPF account holders. Later on, this facility was further extended to advance claims for illness, education, marriage and housing purposes.
Mandaviya said, “These claims are processed automatically by the system without any human involvement, ensuring quick turnaround and transparency.”
The Union Minister further added that the EPFO has taken a series of reforms in recent times, designed to make its services faster, transparent, and user-friendly for all stakeholders, including simplification of KYC, correction of member details, and removal of dependency on the employer and EPFO for member profile correction.
In FY 2024-25, EPFO processed a record 2.34 crore advance claims through auto-settlement, a 161 per cent increase compared to 89.52 lakh claims in FY 2023-24, said the Union Minister Mansukh Mandaviya. Notably, 59 per cent of all advance claims in 2024-25 were settled through the auto mode as compared to 31 per cent in 2023-24. In just the first 2.5 months of FY 2025-26, EPFO has already auto-settled 76.52 lakh claims, constituting 70 per cent of all advance claims settled to date.
This growth highlights EPFO’s strong focus on automation and delivering faster, more efficient services to its members.
“These reforms have not only accelerated the claim settlement process but have also contributed to minimising member grievances, further enhancing ease of living for the member,” he added.
SOURCE : ET(The Economic Times)
